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I think, and this is me here, that each item lets the user act more freely and effectively. So having three Level 1 items is a bigger boost than having one Level 3 item. After that there's the focus of each item type, Bombs are better for getting out of a bad situation, Costumes make it easier to withstand damage, Trinkets support esoteric effects, and Wands are good for sustained blasting.Building a level 1 costume seems worse than building a level 3 trinket, but we don't really understand how any of those things work.
Someone picking apart a Coven's wards would do better with a Bomb or Trinket than another item. Conversely, a Magical Girl fighting a small army of demons gets more use from Wands and Costumes.